When a Negative Externality Is Not Internalized,then the Equilibrium Price

question 121

Multiple Choice

When a negative externality is not internalized,then the equilibrium price of the good produced is too ________ and the equilibrium quantity produced is too ________.

• A) high; high
• B) low; low
• C) low; high
• D) high; low
• E) expensive; inefficient

---

Definitions:

Concentrated

Focusing resources or efforts on a limited area or segment, often to achieve a more significant impact or deeper understanding.

Niche

A specialized segment of the market for a particular kind of product or service.

Undifferentiated

A marketing strategy where a company markets its product or service to all potential consumers in the same manner, without segmentation.

Competitive Advantage

The unique attributes or capabilities that allow a company to outperform its competitors, creating greater value for its customers.